Define an AI strategy to create business value

Introduction

AI has the capacity to empower the whole world to achieve more. From empowering technical development

 teams to mobilizing an entire organization to unlock the true potential of AI, enterprises need to 

think strategically about AI – and they need to start today.

Define a holistic AI strategy for your business with INSEAD

There is a lot of hype around AI. But with significant ongoing investment from venture capitalists, 

major technology companies, and companies across industries over the past decade, it’s clear that AI

 is an essential technology of the future. While the complexity underpinning AI may seem intimidating,

 a high-level understanding of AI capabilities is all you need to drive substantial value.

Transform your applications with AI - Case study introduction

Abstract

Telefónica is one of the world's largest telecommunications companies. Like all telecommunications 

companies, it has been hit by digital disruption and changing customer preferences. This case study 

describes how Telefónica used AI to transform its relationships with customers, ultimately increasing 

customer loyalty and satisfaction.

Industry context

Telefónica is one of the largest telecommunications companies in the world, operating world-class fixed, 

mobile, and broadband networks in several countries across Europe and Latin America.

Challenge

Telefónica began its transformation in 2010, when it committed to a massive digitalization project to

 make its platforms intelligent and modernize the business. 

Transform your applications with AI - Executive Q&A

Telefónica now regard themselves as a data-centric organization, which has fundamentally changed the 

way they operate. Watch this video from Chema Alonso, Telefónica’s Chief Data Officer, to learn about 

how they are prioritizing their AI investments, the benefits they are extracting from these investments, 

and how they will ensure Telefónica will continue to be an AI-led company moving forward.

Transform your applications with AI - Case study resolution

Telefónica also wanted to give customers visibility and power over their stored data to help build trust.

 Finally, Telefónica wanted to make better use of its existing data estate by providing AI-powered 

recommendations to customers and even offering new, relevant services and experiences outside of the telco world.

Results

Aura is the basis for a new relationship model with customers. Just one year after release, Aura has

 around 2 million monthly active users. In a study to analyze visibility, use, and functionality of

 Aura in Movistar+, over 90 percent of surveyed customers said they would keep using Aura and that they would recommend it.